{"id":22871,"date":"2025-03-25T23:39:37","date_gmt":"2025-03-25T18:09:37","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=22871"},"modified":"2025-03-25T23:39:37","modified_gmt":"2025-03-25T18:09:37","slug":"relationship-of-nifty-50-with-acc-limited","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=22871","title":{"rendered":"Relationship of Nifty 50 with ACC Limited"},"content":{"rendered":"

Relationship of Nifty 50 with ACC Limited<\/span><\/h1>\n

Author Name: Akash Gaikwad<\/span><\/b><\/p>\n

Introduction to ACC Limited<\/span><\/h2>\n

ACC Limited, established in 1936, is one of India\u2019s leading manufacturers of cement and ready-mix concrete. Known for its high-quality products such as Ordinary Portland Cement (OPC) and Portland Pozzolana Cement (PPC), ACC serves a wide range of construction needs across the country. With a strong presence in both urban and rural markets, the company operates several manufacturing plants and distribution centers. Committed to sustainability, ACC integrates eco-friendly technologies in its production processes. In 2022, ACC became a part of the Adani Group, further strengthening its position in the Indian cement industry.<\/span><\/h2>\n

Objective<\/span><\/h2>\n

The objective of this study is to determine the beta value of ACC Limited relative to the Nifty 50 index. <\/span><\/p>\n

Literature Review<\/span><\/h2>\n

1. Sector-Specific Influence on Stock Prices<\/span><\/b><\/p>\n

Narayan and Narayan (2013) highlighted that the performance of ACC Limited, being part of the cement sector, is influenced by economic cycles, government policies, and infrastructural development. The sector-specific factors significantly affect the correlation between individual stocks and market indices. For cyclical sectors like cement company noted that stock performance often tracks broader market movements due to the industry’s reliance on overall economic conditions, which also influence market indices like Nifty.<\/b><\/span><\/p>\n

2. Correlation and Volatility of Stocks with Market Indices<\/span><\/b><\/p>\n

Kaur et al. (2015) presented a critical element in understanding the relationship between ACC’s stock price and the Nifty index is market volatility and have explored the correlation between individual stock returns and the Nifty 50 index in India. Their findings suggest that large-cap stocks, such as ACC, show a significant positive correlation with Nifty returns, especially during periods of market volatility.<\/span><\/p>\n

Data Collection<\/span><\/h2>\n

Data for ACC Limited and Nifty 50 was downloaded for the period from 1st January 2024 to 31st December 2024. The data was manipulated to calculate the Friday closing prices for both indices. The Nifty 50 was represented as X and ACC Limited as Y. A linear regression analysis was performed where Y was regressed on X.<\/span><\/p>\n

Data Analysis<\/span><\/h2>\n

Equation:<\/span><\/b>\u00a0 <\/span>ACC = -0.493+ 1.329 Nifty50\u00a0 <\/span><\/span><\/p>\n

Interpretation: <\/span><\/b><\/p>\n

The regression equation describes the relationship between Nifty50 (X) and ACC Limited \u00a0<\/span>(Y), indicating that ACC Ltd share price is the dependent variable, while Nifty50 is the independent variable. The positive coefficient of 1.32 suggests that for every unit increase in Nifty50, the ACC Ltd share price is expected to increase by 1.32 units. With 47 observations (N = 47), the (R^2) value is 0.27, implying that approximately 27% of the variation in ACC Ltd share price can be explained by changes in Nifty50. The F-value for the model is 17.46 \u00a0<\/span>The p-value for the slope is 0.001, which is less than the conventional threshold of 0.05. This indicates that the relationship between Nifty50 and ACC Ltd share price is statistically significant at the 5% level. Consequently, this model provides evidence to suggest a significant linear relationship between Nifty50 and Natco Pharma’s share price.<\/b><\/span><\/p>\n

\u00a0<\/span><\/b><\/p>\n

Conclusion:<\/span><\/h2>\n

Since the Beta 1.32 which \u00a0<\/span>is more \u00a0<\/span>than 1, it indicates that ACC Limited is preferable for short term investment.<\/span><\/p>\n

Reference:<\/span><\/b><\/p>\n

Narayan, P. K., & Narayan, S. (2013). “Sectoral Stock Returns and Market Behaviours.” International Journal of Finance & Economics<\/i>.<\/b><\/span><\/p>\n

Kaur, A., Malhotra, D., & Sharma, R. (2015). “Correlation of Individual Stock Prices with Market Indices: An Indian Perspective.” Global Journal of Finance and Management<\/i>.<\/b><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Relationship of Nifty 50 with ACC Limited Author Name: Akash Gaikwad Introduction to ACC Limited ACC Limited, established in 1936, is one of India\u2019s leading manufacturers of cement and ready-mix concrete. Known for its high-quality products such as Ordinary Portland Cement (OPC) and Portland Pozzolana Cement (PPC), ACC serves a wide range of construction needs… Continue reading Relationship of Nifty 50 with ACC Limited<\/span><\/a><\/p>\n","protected":false},"author":139770,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-22871","post","type-post","status-publish","format-standard","hentry","category-uncategorized","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/22871","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/users\/139770"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=22871"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/22871\/revisions"}],"predecessor-version":[{"id":22872,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/22871\/revisions\/22872"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=22871"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=22871"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=22871"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}